A recalculation of student loan payments, announced July 14 by the U.S. Department of Education, will erase the balance for certain loans such as the Federal Family Education Loans program. More than 800,000 loan holders will be covered.

The announcement comes after the Supreme Court in June struck down the Biden administration's student loan forgiveness plan.

Not all employees with school debt will qualify for the federal forgiveness plan. Depending on where they work, though, they may find relief through employers that offer paydown benefits for eligible workers.

Employers have been helping in two ways, according to Fidelity Investments:

1. Making payments directly toward eligible employees' student loans.
   "This really hits at the heart of the issue by helping employees pay down their loans faster and achieve financial well-being," said Kacey Brister, senior manager of external communications at Fidelity Investments. "This is also an attractive option for employers looking to attract and retain top talent."
   
   
2. Under the SECURE Act 2.0 of 2022, offering a match into a retirement plan when the employee makes a student loan debt payment. Sixty-six percent of student debt in the U.S. is held by women, and Black American graduates hold almost two times as much debt as white American graduates, according to Fidelity Investments.
   

"Faced with such a heavy burden, borrowers are often unable to save for emergencies and retirement, and delay big life events," Fidelity noted on its...

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